San Antonio, United States - December 26, 2025 - Microsoft is expanding its data centre footprint in the San Antonio region with plans for a new large-scale facility in Medina County, underscoring the company’s continued investment in U.S. cloud and AI infrastructure.
According to filings with the Texas Department of Licensing and Regulation (TDLR), the proposed development is a one-storey data centre spanning approximately 195,670 square feet, located about five miles west of Castroville along FM 471 North. The project is registered under the name “SAT82 Data Center” and carries an estimated construction value of around $400 million.
TDLR records indicate construction is scheduled to begin in August 2026, with completion targeted for July 2028. The facility is listed as privately funded and designed as a colocation data centre, meaning Microsoft may lease capacity to third-party customers in addition to supporting its own cloud workloads.
The Medina County project adds to Microsoft’s long-standing presence in the greater San Antonio area, where the company has operated data centre infrastructure for roughly two decades. Public records show Microsoft controls more than 1,400 acres across Medina County, providing room for future expansion as demand for cloud, enterprise, and AI computing continues to rise.
San Antonio has emerged as an increasingly attractive market for hyperscale data centres due to the availability of land, access to power, and established fibre connectivity. Over the past several years, the region has drawn sustained investment from major technology firms seeking alternatives to more saturated hubs in Northern Virginia and California.
Microsoft’s broader global strategy has focused heavily on scaling infrastructure to support artificial intelligence workloads, which require significantly higher power density and more resilient data centre designs than traditional enterprise computing. While the company has not publicly detailed the technical specifications of the Medina County facility, industry observers note that new Microsoft builds are typically designed to support AI-ready architectures and high-capacity networking.
The announcement comes amid a wave of data centre development across Texas, where state and local authorities continue to see strong interest from hyperscalers and colocation providers. For Medina County, the project represents one of the largest single private investments tied to digital infrastructure in recent years, with potential knock-on effects for construction activity and long-term operations.
With construction still more than half a year away, regulatory approvals and site preparation remain ongoing. However, the filing confirms that Microsoft’s expansion in the San Antonio area is far from complete, reinforcing the region’s role in the company’s long-term cloud and AI infrastructure roadmap.
